Abstract:
This research study was done in Social Security Schemes in Dodoma, specifically at the
regional offices of PSPF and GEPF and LAPF Head Office. The study aimed at assessing
the Determinants of Investment Income Growth in the Tanzanian Social Security
Schemes.
In this study, relevant literatures were reviewed in order to get more understanding and
insights about the theories and empirical issues in order to govern this study. Thereafter,
the study used various methodologies to undertake the study for instance, the study used
aggregate secondary data from the year 2005/06 to 2016/17. Data were collected through
documentary review method and analyzed using regression analysis method.
Based on the empirical evidence from this study, findings show that, Value of Social
Security Schemes, Member Contributions and Benefits Payment were statistically
significant at 5% significance level and positively affected investment income growth. The
coefficients of Value of Social Security Schemes, Member Contributions and Benefits
Payment were .001, .022 and .194respectively. Any changes by one unit may result to
change of investment income growth by the amount equal to the coefficient of respective
independent variable ceteris paribus (in billion TZS and vice versa).
The study concludes that, growth of investment income in Social Security Schemes is
positively affected by Member Contributions, Benefits Payment and Value of Social
Security Schemes. Furthermore, findings revealed that Benefits Payment contributes more
to Investment Income Growth, followed by Member Contributions and finally Value of
Social Security Schemes.
The study therefore recommends that, Social Security Schemes should increase coverage into informal sector, increase member registration, improve benefit packages and invest contributions of members into more productive investments to facilitate
investment income growth.
